Businesses and consumers will be able to resolve cross-border legal disputes more easily, thanks to a reform adopted by European justice ministers today. Commission Vice-President Viviane Reding, the EU's Justice Commissioner, welcomed the adoption by the Council of the reformed rules to determine which national court has jurisdiction in cross-border cases and how court judgments issued in one EU country are recognised and enforced in another. The reform was proposed by the European Commission in 2010 (see IP/10/1705 and MEMO/10/677).

"This reform will cut red tape for thousands of consumers and companies around Europe, reducing legal headaches and making it easier to do business in the Single Market," said Vice-President Viviane Reding, the EU's Justice Commissioner. "I am grateful to the Cypriot Presidency for helping to ensure the new rules could be adopted before the end of the year."

The legislation proposed by the Commission in December 2010 aims to strengthen the Single Market and cut red tape. It proposes to abolish the costly "exequatur" procedure which requires companies to first go through a time-consuming and costly procedure in courts to get a judgment in civil and commercial matters recognised in another EU country. Abolishing this administrative procedure is expected to save businesses and consumers up to EUR 48 million a year.

Today's adoption by justice ministers meeting in the Council of the EU follows a vote by the European Parliament on 20 November 2012 to endorse the reforms (MEMO/12/875). The Regulation will enter force following its publication in the EU’s Official Journal in the coming weeks; it will enter into application 2 years thereafter.